Hey tim, you are are correct. They beat the top end of the forecast by over 23%. Amazing really. 90% of that over performance was at Mt Magnet (43%). Although it was pleasing to see that Edna May also beat guidance by 8%.
This is from the March Quarterly report.
I cannot help but look forward to actually reading the quarterly. Plus, getting a firmer idea of what the Sept Q production guidance will look like.
I do note that the amount of actual free cash, is slightly less than what some expected, but.. I have a feeling that is simply because there will be an increase in the bullion on hand, which did not get sold yet. Which should ensure that the next quarter's AISC will also benefit.
Still, I can only image that the June Q AISC sits around $1000 AUD.
I think RMS got a little unlucky with timing, as we know they sold heavily into the hedge early in the quarter, when POG in AUD was particularly high ($2800ish), then moved a bit lower.
This is the hedging situation as of the start of 2020 (on the left, most up to date on the right).
RMS must had added some more hedging early in the year, but just before the AUD price soared to $2800...
Annoying, but... not surprising. Many other producers were still hedging more gold early this year, then... suddenly, after March, I don't think I have seen any company announce further hedging.... funny that.
The Sept Q sees slightly less hedging, with a higher price. All bodes well I think. Especially with an increased production profile.
I note that RMS hedging going forward, now looks less erroneous, when one look at its yearly production rates with the new LOM.
This is also before any further enhancement through the a potential plant upgrade at Mt Magnet. The numbers would also change dramatically if RMS was also to purchase a asset that is in production (though perhaps it will have its own legacy hedging).
So in within 2 months, RMS will be sitting on perhaps 210/230m in cash. Then it just keeps getting bigger. Unlike say RRL, I have no doubt RMS are going to keep focusing on growth (but sustainable growth).
(20min delay)